PJM extends hot weather alert through July 30, peakload forecast near 139 GW

Houston — As warmer-than-normal temperatures persisted across large parts of the eastern US July 29, the PJM Interconnection extended its hot weather alert through July 30, marking 15 days so far this month part of the power grid operator's footprint has been subject to such an alert.

The alert is in effect from 7 am ET (1100 GMT) to 10 pm ET for PJM's Mid-Atlantic region. PJM previously issued hot weather alerts for July 3, 6-9, 18-22 and July 26-29 month to date.

"Hot weather alerts are issued when temperatures are expected to exceed 90 degrees Fahrenheit (93 degrees in some areas) with high humidity, driving up demand for electricity," the grid operator said on its website. "High temperatures are expected to remain in the 90s for much of the week."

PJM forecast peakload in its footprint would be around 144.181 GW July 29 and 139.060 GW on July 30. PJM's all-time peakload record is 165.492 GW ,reached in July 2011.

So far in July, PJM peakload has averaged 133.367 GW, 1% higher year on year and 21% higher month on month, according to PJM data. Peakload in July 2019 topped out at 151.570 GW. The month-to-date and year-to-date high of 145.372 GW was posted on July 20.

Price impacts

The continued hot weather alerts seem to have had little impact on prices.

PJM West Hub on-peak day-ahead traded in the upper $20s/MWh for July 30 delivery on the Intercontinental Exchange, with balance of the day for July 29 trading in the mid-$30s/MWh. For comparison, PJM Western Hub on-peak day-ahead locational marginal prices have averaged more than $30.75/MWh so far this month, about 4% lower than the July 2019 average, according to PJM data.

Weather expectations

High temperatures across the PJM footprint are forecast to reach as high as 93 F, as much as 6 degrees above seasonal norms, according to CustomWeather. In Philadelphia, July temperatures have averaged 4.3 degrees above normal so far this month, according to the US National Weather Service.

Under a hot weather alert, PJM transmission and generation dispatchers are asked to review plans to determine if any maintenance or testing, scheduled or being performed, on any monitoring, control, transmission or generating equipment can be deferred or canceled.

The Mid-Atlantic region includes the Atlantic City Electric, Baltimore Gas & Electric, Delmarva Power, Jersey Central Power & Light, Met-Ed, Penelec, PECO, PEPCO, PPL Electric Utilities, PSE&G and Orange & Rockland: Rockland Electric Company transmission zones, PJM said.